Are Trickle-Down Economics a Viable Theory in Today's Economy Research Paper

Are Trickle-Down Economics a Viable Theory in Today's Economy - Research Paper Example The people, in turn, will have more money to spend in the economy.†2 Therefore, are trickle-down economics a viable theory in today’s economy? The average person has no concept of why anyone would give huge tax breaks to the wealthy. This argument has been prevalent since the rich has taken advantage of economic freedoms to increase their profits. It seems only fair to the ordinary taxpayer that they should give back a larger share than those who are not wealthy. This theory is the basis for the progressive income tax within the United States. The government taxes the higher tax brackets when their income increases in excess. The trickle-down theory promotes that tax breaks for the higher income sectors will benefit all. The average income earner cannot begin to fathom the reasoning behind this. Looking at history and the principles of supply and demand, some economists would say that efforts should be made to increase the supply or production of goods and services. Othe rs would argue that a slow demand for goods and services is the problem, and efforts should be made to increase demand. The 19th century French economist Jean-Baptiste Say argued that economic growth will grow naturally if you boost production. This has become known as Say’s Law. ... Therefore, there has to be a demand that is not being satisfied. What they desire is either too expensive or not being made. Making products that are in great demand will, in turn, drive down the cost and create profits for the producer or seller. This process satisfies the need or demand and turns the wheels of the economy. In the 19th century this theory was a viable way to access the situation. Thomas Jefferson even stood by the theory. When the Great Depression began in the 1930s, some economists’ views began to change. The British economist, John Keynes, argued â€Å"that there are such things as overproduction and lack of demand, and the key is to increase demand rather than supply.†4 It was his understanding that consumer demand should be promoted instead of production, and this would create jobs and production through higher consumption. Keynes introduced many theories in order to stabilize the economy on a short-term or immediate basis. He introduced policies t o adjust interest rates, which adjusted available money. He also introduced policies that encouraged government spending and taxes, which would boost demand. A major part of these adjustments were to increase taxes on the rich and reduce taxes on the poor. It was his contention that the rich would invest their money producing more products and the lower income people would more than likely spend. Therefore, the oversupply of goods would be taken care of on its own, which was the source of the problem. Keynes’ philosophy of economics continued for at least three decades. By 1970 Say’s Law began to emerge again as a viable theory. Once again, trickle-down ideas were gathering support of some economists. If we think of trickle-down economics as a catalyst to boost production, it uses Say’s

Self-Directed Well-Being Assessment And Enhancement Program Essay

Self-Directed Well-Being Assessment And Enhancement Program - Essay Example I ask my parents, friends and teachers to describe me and my actions when am at work or when pursuing my personal career. My parents reported that I love my work but I usually find time to interact with them. My friend said that I enjoyed working and find happiness in doing the same. The colleagues at work indicated that I work without any form of supervision and that I found time to interact with the rest despite my busy schedules. My strength at home is that am in a position to manage my time effectively and balance the time I spend at work and time I spend with families and friends. Additionally, I have the talent to sing and tell stories an aspect that makes my work enjoyable and fulfilling. This is due to the fact that I can easily teach the children various songs in addition to telling them amusing stories. Therefore, doing what I like doing have greatly helped in improving my career wellbeing. Moreover, to the fact that I do relate well with fellow teachers, am in a position to learn from them and apply the same in my work as a teacher. Some teachers have better skills than I do but I usually try to emulate them so that I can improve on my skills too. The school has partnership programs whereby teachers from the neighboring attend (Rath and Harter 123). These programs aim at ensuring that teachers share skills and learn from each other in addition to sharing problems that affect them in the course of performing their duties. My social wellbeing is always impacted by individuals who are close to me. These include friends, relatives and colleague at work. The parents have been a source of motivation, an aspect that has made me to achieve my goals in life. Additionally, friends have been a source of inspiration to lead a healthy life and ensure that I am positive about life. Higher level of social being therefore had assisted me to be in a position to establish